For those looking to invest in the United States, at some point you will hear the phrase "Florida is an anti-crisis state."

While the government is undertaking gigantic efforts to get the American economy back on track, Florida is one of the few states that is already fully recovered, economically speaking.

There is an index called Back-to-Normal, created by the initiative of two big companies, CNN and Moody's Analytics, which monitors some important economic indicators that serve to measure the financial health of states.

Through analysis of consumer behaviour, unemployment insurance claims, unemployment rates and average consumer spending, a final figure is arrived at that signals the recovery power of the states.

Florida has reached 101%, with 100% representing a situation equal to that experienced by 2019, before the pandemic.

And one of the cities that stands out in this recovery process is Orlando

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The city of Orlando

Known throughout the world for the Disney and Universal parks complexes, Orlando was founded in 1873 and today has more than 260 thousand inhabitants, a number which exceeds 2 million when we consider the entire metropolitan region.

Historically, Orlando has always played an important role for the country. It housed a major military base during the Second World War, during which time many aircraft factories were opened in the region.

As early as 1955, the federal government inaugurated the Space Programme at nearby Cape Canaveral, the site of the famous special rocket launches by NASA, the US space agency, which attract thousands of curious onlookers and enthusiasts of aviation and space exploration.

A curious fact is that when Walt Disney began to acquire land totalling more than 11,000 hectares in the city, there was a strong rumour that the area would also be used for space projects.

But on 15 November 1965, Disney himself announced the real reason for buying the land: he was going to build the biggest entertainment complex on the planet.

Orlando receives millions of tourists every year, leaving it second only to Paris, in France, in the ranking of the most visited cities in the world.

This means that the city, which is the 5th largest in the state of Florida, has a gigantic infrastructure of hotels, restaurants, guides and local tourist services to meet this demand.

230,000 people work in the tourism sector, 56,000 of whom are direct employees of the Disney complex.

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The Orlando property market

Investing in real estate in the United States is an option increasingly sought after by Brazilians. Since the beginning of the pandemic, contrary to what many people might imagine, this type of investment has grown more than 30%.

Because it offers a pleasant and familiar climate to Latinos, Florida is the most sought-after state, and the city of Orlando has a more than special place in this context.

And not only Brazilians and other Latinos, of all the foreign investment made in real estate in the country, Florida is the final destination for 22% of the amount. Then comes California, with 15%; Texas, with 9% and New York with 5%.

Brazilian capital ranks sixth among all foreigners who invest in the state. Behind the Chinese, Canadians, Mexicans, Indians and Colombians in terms of turnover.

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Short term rentals

There are many Brazilians who finance properties for short-term rental with excellent prices and payment conditions.

The value of the installments is absorbed by the income from renting to other guests, that is, the property pays for itself, increasing its market price and the owner still has a place to spend a few days with his family when visiting the city.

This modality is usually the most lucrative, since Orlando has an influx of tourists and business people who are travelling all year round.

Orlando offers endless options of rides and is internationally famous for the Disney Parks, Seaworld, Universal Studios and the Island Of Adventure. In other words, it is the entertainment capital of the world when it comes to theme parks.

As a result, the houses available for seasonal rent, which offer more privacy and cost-effectiveness than hotels, are in demand at all times of the year.

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Long-term lease

There is also the option of renting a house for city residents.

For this modality, there are important tips, such as, for example, considering the offer of schools in the neighbourhood.

In the United States, students must attend schools that are in the same neighbourhood as their home.

Consequently, houses located near good schools tend to appreciate a little more.

Therefore, if the option is for long term rental, the advice of an experienced Broker will give you a broad view of the possibilities of purchase that you have.

Long term rentals generally have a slightly lower rate of return than short term rentals, but have the advantage of security and regularity of return.

Between short and long term, the difference is around 2% per year in profitability. Which represents $10,000 if we consider a $500,000 property as a reference.

While short term rental returns average 8% per annum, long term returns are between 6 and 7%. These are the most conservative estimates.

It is important to note that we are not considering the appreciation of the property in this return.

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Unbureaucratic purchasing process

The high volume of negotiations in the Orlando real estate market makes the market liquidity higher than the rates of other regions.

It is a dynamic market full of opportunities.

And contrary to what many may think, to buy a property in Orlando there are very simple procedures to be followed.

The buyer must have a valid visa, which can be tourist, business or study visa, and the whole negotiation can still be done at a distance.

Many buyers carry out all the stages of negotiation when they are in Brazil and do not even visit the house they bought in person before closing the deal.

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Financing rates

For a foreigner to finance a property in Orlando, a down payment of between 30 and 35% of the value of the property is required. That is, 120 thousand dollars for a property with a market value of 400 thousand dollars.

This business is extremely favourable, as it has great interest rates, varying from Starting at 3.5% a.a., state incentives and constant growth prospects.

Would you like to know the best developments to invest in Orlando and discover the rates of return of each of them?

Contact us and schedule a meeting, without obligation, so that we can present in detail the advantages of investing in the Orlando real estate market.